Acquisition

RNS Number : 4437K

Harworth Group PLC

16 April 2015

 



Harworth Group plc                                                                                                            

16 April 2015

Harworth Estates acquires major development site in north east

Harworth Estates, the UK property regeneration company owned by Harworth Group plc, has acquired the site of the former Lynemouth aluminium smelter near Newcastle-upon-Tyne from Rio Tinto.

The 320-acre Northumberland site, which is located near the coast, offers the potential for a range of future commercial development once the site has been fully masterplanned.

The acquisition of the site is Harworth's second major non-coalfield acquisition and adds to its large portfolio of UK regeneration sites.  Last November Harworth bought the 162-acre site of the former Skelton Grange power station near Leeds from RWE Generation. The company already manages more than 200 sites across the North and Midlands, totalling more than 27,000 acres.

 "Our marketing of the site attracted a great deal of interest from a wide range of sectors," said Richard Anderson, Environment Manager at Rio Tinto.  "After lengthy consideration and due diligence, we decided the offer from Harworth Estates gave the best prospect of securing sustainable long-term employment on the site given their exceptional track record of successfully regenerating redundant industrial sites."

Since agreeing the sale, Rio Tinto has completed the decommissioning of the site.  The decommissioning process has been led by Rio Tinto's own team and has involved the removal of plant and machinery, the demolition of some buildings and cleaning the site to enable the return of its operating permit to industry regulator, the Environment Agency.

Owen Michaelson, Chief Executive of Harworth Group said:  "The Lynemouth site fits very well with the rest of our property portfolio in the north east, given we own a number of sites planned for regeneration at Butterwell, Ellington, Widdrington and a site adjacent to the smelter site.  As we take the site forward to the occupier market we will be emphasising its many benefits including access via rail to the Port of Blyth.

"Our specialist team has significant experience developing large-scale brownfield sites and transforming them into places of lasting economic and social regeneration.  We look forward to working closely with the local community and other partners with an interest in the prosperity of Northumberland in doing the same at Lynemouth."

Harworth's purchase of the Lynemouth site has been welcomed by Northumberland County Council. Councillor Allan Hepple, Policy Board Member for Planning, Housing and Regeneration said, "This is a good deal for the county and fits in with our strategic plans for economic growth. It raises the prospect of significant investment and job creation at Lynemouth.  With its size, location and surrounding infrastructure the site has enormous potential for development and the county council will work closely with Harworth Estates to attract businesses that will create good quality, long-term jobs".

For further information:

Harworth Estates

Iain Thomson, Harworth Estates

0114 254 1212

[e-mail]

Faye Walters, Tavistock

020 7920 3150

[e-mail]

Rio Tinto

Illtud Harri (Chief Advisor - Media Relations)

020 7781 1152

David Outhwaite (Principal Advisor - Media Relations)

020 7781 1623

Notes to Editors:

Harworth Estates

Harworth Estates is one of the leading regeneration specialists in the UK, wholly owned by Harworth Group plc.  Harworth owns and manages around 27,000 acres of land across 200 sites, ranging from residential development land to commercial properties, low-carbon energy schemes and agricultural estates (www.harworthestates.co.uk).

Lynemouth

Following closure of the Rio Tinto operations at Lynemouth during 2012 a specialist team of employees were retained to complete the decommissioning process.  Most of the remaining 60 employees were made redundant by the end of 2014 with a small number being retained until the completion of the sale and handover of the site.

In February 2014, Rio Tinto announced the sale of its Northumberland farming land to The Crown Estate.  The legacy fund created by Rio Tinto following the closure of Lynemouth has donated around £630,000 to 18 local good charities and other good causes.

 

END

 

 

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